10 Start Up Expenses Every Entrepreneur Should Avoid

It’s true that you need to spend money to make money but when you are a startup it can be difficult to balance off everything. Most entrepreneurs make the mistake of spending money before they start making money. There are expenses that are essential and you can’t avoid but there are also a lot of expenses that are not necessarily necessary.

Here are our top 10 things your startup business can do without.

1. A fancy office

When you are starting a business, it’s normal to feel like you want to start with everything new but a fancy office will cost you money that you don’t have yet. If your business allows you to work from home, great! If you can’t work from home, find something that is reasonable.

2. Expensive equipment

It’s always tempting to get the latest technology available but do you have to have the latest Macbook? Probably not at this stage, expensive equipment is nice but costly. What you can do without don’t avoid it.

3. Subscription services

Unless you really need services that only paid solution can provide, there are cheaper and even free alternatives that you can use in the meantime.

4. Staffing

As much as it would be fun to be a boss and have people work for you. This is where you can cut expenses, you don’t really need someone to answer phone calls, send emails and make coffee. It’s not the wisest idea to staff before you’re financially ready.

5. Employee salaries

Eventually your business will allow you to pay full set salaries but until then there are other ways to cut costs. Hire only for the positions that really needs to have someone and come up with ways of compensating them based on performance incentives.

6. Information products

Yes, it is important to learn and get inspiration or taking courses to understand your business more but when you are a startup that’s a lot of money to spend, rather use that time implementing which is more important for a startup.

7. Legal and Financial advice

When you’re starting up all you need is a good lawyer or accountant in your business’ area of expertise who you can only pay for their service in helping you keep everything under control. It’s important to not compromise on these two but things like doing background research, filling out documents and book keeping you can spend less on that.

8. Business trips and parties

Attending business conferences is good for networking and can help your business grow, unless you know it will change your business; attend the local networking events in your area or the free online forums and avoid throwing unnecessary office parties.

9. Printed Marketing Materials

It’s very professional to have all your marketing materials have your stamp on them. Fancy customer brochures and logo printed envelops are cool but they cost a lot of money. As a startup those are unnecessary expenses you can do without.

10. Expensive clothes

It’s important to look smart and professional but it doesn’t have to be designer clothes. You can find nice clothes at reasonable prices, just be smart when shopping. Showing off will only hurt you and your business.